The Croatian government plans to make another step towards joining the Eurozone in the second half of 2020, following few exercises recently carried out by the European Central Bank and the relevant Croatian authorities.
Despite the financial markets having suffered losses in the first instance — spurring the European Central Bank decision to inject EUR750bn into the system — it is the real economy which will be the hardest hit by recession. For this reason, fiscal stimuli will matter more than monetary ones.
Second online meeting of Eurozone’s finance ministers ended in a stalemate. Although a plan for a COVID-19-related rescue package has already been proposed, a lack of unity among member states has prevented its implementation. There was a need for another meeting to reach an agreement.
The establishment of the banking union in the Eurozone means that banks are operating in a single regulatory environment, which is important especially in the case of cross-border banking groups. However, the banking union still lacks the planned third pillar, that is, a common deposit guarantee...
On its path to Eurozone membership Croatia has taken the important step of filing a formal application to join the EU's Exchange Rate Mechanism, or ERM II. But doubts whether introducing the EUR is a good or a dangerous thing exist.